Buying a UK boat through a Belizean company

[tanre]

Recently had an offer to buy a Belize company whose sole asset is this boat for sale. The boat is UK flagged and registered. Registration paperwork shows company name. EU VAT not paid and boat has never been in Schengen waters. Insurance was paid by the individual and not through the company. No commercial income ever recorded from the shell company. Company was set up to purchase the boat and eventually "charter" 2 years ago. Boat is currently in the US and I am a US citizen.



Have no clue where to start to make sure if I do purchase it, I don't fall into the many unknown pitfalls that I'm sure await me...


If I buy the company, could I keep the UK registration (apparently still valid for awhile)?
Would there be any issues,benefits,drawbacks if I wanted to dissolve the company and register the boat personally?

Being told no liens and clean title.
Any tax implications?
Who should I hire to help...Belizean/UK/US business attorneys, Belizean/UK/US Maritime attorneys...you guys and gals



Any problem with the insurance being paid personally and not THROUGH the company?


Any potential scams?

[belizesailor]

Originally Posted by tanre

Recently had an offer to buy a Belize company whose sole asset is this boat for sale. The boat is UK flagged and registered. Registration paperwork shows company name. EU VAT not paid and boat has never been in Schengen waters. Insurance was paid by the individual and not through the company. No commercial income ever recorded from the shell company. Company was set up to purchase the boat and eventually "charter" 2 years ago. Boat is currently in the US and I am a US citizen.



Have no clue where to start to make sure if I do purchase it, I don't fall into the many unknown pitfalls that I'm sure await me...


If I buy the company, could I keep the UK registration (apparently still valid for awhile)?
Would there be any issues,benefits,drawbacks if I wanted to dissolve the company and register the boat personally?

Being told no liens and clean title.
Any tax implications?
Who should I hire to help...Belizean/UK/US business attorneys, Belizean/UK/US Maritime attorneys...you guys and gals



Any problem with the insurance being paid personally and not THROUGH the company?


Any potential scams?

What is your intended use for this boat and where? Example: recreational only, charter/commercal, in Belize or not?

[tanre]

Originally Posted by belizesailor

What is your intended use for this boat and where? Example: recreational only, charter/commercal, in Belize or not?

I am passing on this deal for other reasons, but maybe someone could use the answer as well. For me it would be recreational and worldwide travel.

[goboatingnow]

Boats wrapped up in companies like this are essentially tax evasion , for example the insurance should be in the company name not an individual as the individual does not have an insurance interest.

While you’ve passed I’ve have offered to buy the boat out of the company and let the company owners resolve the winding up.

[David Mathis]

Are you sure this isn't part of a Nigerian estate being settled? You have to pay a significant filing fee to collect a million dollars plus a boat?

Keep looking.

[letsgetsailing3]

The problem, of course, is that the company could have some liabilities, tax, and otherwise.

The tax situation on the boat seems problematic.

Maybe it works, maybe it doesn't, but when taxes haven't been paid, there could be a liability there even for the past.

[belizesailor]

For recreational cruising use, I see no advantage to buying a Belizean company. As a USA Citizen the most straight forward transaction would be to buy the boat directly in your name and Federally Document it ( USCG).

No upsides to holding in a Belizean company and potentially some downsides.

I dont think a USA Citizen could keep it UK Registered either (others here will likely know for sure)

[belizesailor]

Originally Posted by goboatingnow

Boats wrapped up in companies like this are essentially tax evasion ....

There are many legitimate and legal reasons to hold a vessel or other asset in a corportate entity.

[Anders]

Originally Posted by belizesailor

I dont think a USA Citizen could keep it UK Registered either (others here will likely know for sure)

Can't se any reason why anyone would want to do that but they can if they have a representative in the UK and they want to register it on Part 1. SSR is UK residents only.

[belizesailor]

Originally Posted by Anders

Can't se any reason why anyone would want to do that but they can if they have a representative in the UK and they want to register it on Part 1. SSR is UK residents only.

I cant think of any advantage either except not to change country of registration. But, for a USA Citizen I think USCG Documentation is a much easier route.

[goboatingnow]

Originally Posted by belizesailor

There are many legitimate and legal reasons to hold a vessel or other asset in a corportate entity.

Many no , a few reasons yes and under very limited situations

[dohenyboy]

This would make sense if it were done so that the boat could fly the red ensign, but I don't think a Belizean corporation would permit that. Jersey, Guernsey, etc. yes but not Belize. Belize is one of the easier jurisdictions to set up but the country is not very well regulated. If it were the Cayman Islands, I would not have any concern.